Welcome, ladies and gentlemen, and thank you for your patience. You've joined Xunlei's First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I'd now like to turn the call over to the host, Investor Relations Manager, Ms. Luhan Tang.

Good morning, everyone, and thank you for joining Xunlei's Q1 2024 Earnings Conference Call. With me today are Eric Zhou, CFO; and Hu Lee, VP of Finance. Our IR website has our earnings press release available to supplement our prepared remarks during the call. Today's agenda includes our prepared opening remarks from Chairman and CEO, Mr. Jinbo Li, on Q1 operations highlights, followed by CFO, Mr. Eric Zhou, presenting financial results detail and our revenue guidance for Q2 2024, before we open up the floor to your questions in a Q&A session. Please note that this call is recorded and can be replayed on our Investor Relations website at ir.xunlei.com. Before we get started, I would like to take this opportunity to remind you that the discussion today will contain certain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations under current market conditions that are subject to risks and uncertainties that are difficult to predict, which may cause actual results to differ materially from those made in the forward-looking statements. Please refer to our SEC filings for a more detailed description of the risk factors that may affect our results. Xunlei assumes no obligations to update any forward-looking statements except as required under applicable law. On this call, we'll be using both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP and the comparable GAAP measures can be found in our earnings press release. Please note that all numbers are in U.S. dollars, unless otherwise stated. Now the following is the prepared statement by Mr. Jinbo Li, Chairman and CEO of Xunlei Limited. Good morning, and good evening, everyone. Thank you all for joining us today. We have kicked off 2024 with…

Thank you, Luhan, and thank you all again for participating in Xunlei's conference call to discuss the financial results of the first quarter of 2024. In the first quarter, total revenues were $80.4 million, representing a decrease of 19% year-over-year. The decrease was mainly attributable to the decreased revenue from our live streaming business as a result of the downsize of our domestic audio live streaming operations since June 2023. Revenues from cloud computing were $30.2 million, representing a decrease of 7.8% year-over-year. The decrease was mainly due to the decreased revenues from certain of major customers of cloud computing services as well as the decreased sales revenue of cloud computing hardware devices. Revenues from subscriptions were $33.1 million, representing an increase of 12.9% year-over-year. The increase was mainly driven by the increase in the number of subscribers. The number of subscribers was 5.76 million as of March 31, 2024, compared with 4.84 million as of March 31, 2023. The average revenue per subscriber for the first quarter of 2024 was RMB 39.5 million compared with RMB 41 million in the same period last year. The lower average revenue per subscriber was due to more promotional activities we conducted during the first quarter of 2024. Revenues from live streaming and other IVAS were $17.1 million, representing a decrease of 54.1% year-over-year. The decrease of live streaming and other IVAS revenues was mainly due to the downsize of our domestic audio live streaming operations since June 2023. Costs of revenues were $37.1 million, representing 46.2% of our total revenues compared with $59.3 million or 59.8% of the total revenues in the same period of 2023. The decrease in the cost of revenues was mainly attributable to the decreased revenue sharing costs for our live streaming business, which was consistent with a…

[Operator Instructions] Our first question comes from the line of [ Yajing Guo ] from Ping An Insurance.

[Foreign Language]

She stated that [indiscernible] the record revenue for the subscription business, and she observed a decline in the number of subscribers this quarter compared with the previous quarter. She would like to know some insights into the current strategy for subscription business and our approach to acquire new users. Thanks for asking. The decline in the number of subscribers in the first quarter of 2024 was due to the seasonal impact of the Chinese New Year holidays. Currently, we are implementing a multifaceted strategy to enhance users' loyalty and faster collaborations with various online platforms and strategic partners to acquire new users. Generally speaking, we expect to maintain a relatively stable user base and product revenue, although we may incur fluctuations from time to time. Going forward, our focus will remain on building a robust and sustainable ecosystem, enhancing user benefits, iterating more features to boost the user engagement, and expand user base. Thank you.

[Foreign Language]

[Foreign Language]

The question is, according to the first quarter earnings press release, you mentioned that the decrease in live streaming revenues was because Xunlei had downsized its domestic audio live streaming business since June 2023. I wonder how much this will continue to affect your future earnings, and if Xunlei plans to resume these operations in the future? Thanks for asking. We have already completed downsizing of our domestic audio live streaming business, and the impact on our future financial results will be minimal, if any, on sequential basis, and we don't have any plans right now to resume this business. Instead, we will focus on expanding our operations overseas to mitigate the impact of this business adjustment. Thanks again.

[Foreign Language]

[Foreign Language]

[Operator Instructions] I'm showing no further questions. I'll now turn the conference back to the management team for closing comments.

Thank you, again, for your time and participation. If you have any questions, please feel free to visit our website at ir.xunlei.com, or send an e-mail to our Investor Relations. Have a good day. Operator, we conclude today's conference call. Thank you.

Thank you. That concludes today's conference call. Thank you for participating. You may now disconnect.